40 lines
1.5 KiB
Org Mode
40 lines
1.5 KiB
Org Mode
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#+title: Definitions
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#+HTML_HEAD: <link rel="stylesheet" type="text/css" href="../_share/media/css/org-media-sass/categories/business.css" />
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#+OPTIONS: H:6
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* Links
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- [[./../mba-main.org][TOC | Business]]
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* Notes
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** Market Capitalization (Market Cap)
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Market capitalization (market cap) refers to the total value of a company's outstanding shares of stock. It is used as a measure of a company’s size and worth in the stock market.
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*** Formula:
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#+BEGIN_SRC
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Market Cap = Stock Price × Total Outstanding Shares
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#+END_SRC
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*** Example:
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If a company has 10 million shares and each share is worth $50, the market cap would be:
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#+BEGIN_SRC
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10,000,000 × 50 = 500,000,000
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#+END_SRC
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So, the company's market cap is **$500 million**.
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*** Market Cap Categories:
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- *Small-cap:* Less than **$2 billion** (e.g., early-stage or high-growth companies)
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- *Mid-cap:* Between **$2 billion - $10 billion** (e.g., growing businesses)
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- *Large-cap:* Over **$10 billion** (e.g., well-established companies like Apple, Microsoft)
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*** Why is Market Cap Important?
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- **Indicates company size** – Larger companies tend to be more stable, while smaller ones might have higher growth potential.
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- **Affects investment decisions** – Large-cap stocks are often safer but may grow slower, while small-cap stocks can be more volatile but have higher growth potential.
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- **Used in stock indices** – Major indices like the **S&P 500** are weighted by market cap.
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This structured format is now **ready for Org-mode** and easy to read or export! 🚀
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